What is the Important Points Explanation Document (Article 35 Document) in a Real Estate Contract?
Updated: July 2026, 8
The Important Matters Explanation is stipulated in Article 35 of the Real Estate Transaction Business Act, and is also known as the "Article 35 Document."
In other cases, the important matter explanation is omitted and is sometimes referred to as a ``judo''.
This document plays a very important role for those considering renting and for real estate agents.
This is necessary when buying, selling, or renting real estate, and an explanation must be provided by a real estate agent.
From the buyer's or tenant's perspective, before signing a contract, they must ask themselves whether there really is no risk in the property.
We will determine whether there is any possibility of harm to life or body while living here.
In other words, the important points explanation is both a material and a standard for determining whether it is really okay to purchase or rent the target property.
If there are any errors or omissions in the important information, the buyer or tenant may be caught up in an unforeseen situation, and in the worst case scenario, their life may be put at risk.
Therefore, careful research and interviews with government offices are necessary when preparing a critical opinion.
Here we will explain in detail everything from the basic overview of the Important Information Explanation Document to the specific contents and points to note when reviewing it.
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Definition of Important Matters Explanation Document under the Real Estate Transaction Business Act and the Explanation Obligations of Real Estate Transaction Businesses
When proceeding with a real estate contract, you will be required to confirm all aspects, including detailed information about the property, transaction terms, and legal restrictions.
The Important Information Explanation is a document that provides detailed information about the property and transaction terms to buyers and tenants in real estate transactions, and plays an important role in ensuring transparency in the transaction and preventing problems from occurring.
The important information document plays a wide range of roles in real estate transactions.
One is to allow buyers and tenants to approach the transaction with peace of mind by accurately conveying the property's current status and legal information.
In addition, for sellers and real estate agents, providing appropriate explanations can help prevent future problems.
If the explanation is insufficient or contains false information, the seller or real estate agent may be held legally responsible.
Therefore, the Important Information Explanation is an important tool for ensuring the reliability of real estate transactions.
The best time to review the Important Information Document for a real estate contract is before signing the contract.
This confirmation is generally conducted face-to-face, but in recent years there has been an increase in explanations using IT (IT important explanations).
Real estate agents are obligated to provide an explanation of important matters and also provide verbal explanations.
Under what circumstances does a breach of the duty to explain constitute a violation of the duty to explain?
There are three main types of cases in which real estate agents can be charged with violating their duty to explain.
The first case is when the contractor knew about defects or other issues with the property but failed to disclose them.
The second case is when the real estate agent fails to provide the required information as stipulated in Article 35, Paragraph 1 of the Real Estate Transaction Business Act, etc.
The third case is when a company fails to explain issues that could significantly impact a transaction, even if they are not legally required to be disclosed.
Violations of these rules can lead to serious consequences, such as being sued for damages by buyers or tenants.
Differences between the Important Matters Explanation Document (Article 35) and the Document under Article 37
The Article 35 document is a document used to explain in detail the condition and terms of the property being traded before a contract is concluded.
On the other hand, the document referred to in Article 37 is a contract document that is delivered after the contract is concluded, and it records the details agreed upon by both parties, such as the timing of payment and the timing of delivery.
Understanding the difference between Article 37 and Article 35 is crucial for carrying out practical work accurately.
Furthermore, the document under Article 37 may also include special provisions regarding liability for non-conformity with the contract, so it is necessary to correctly understand the role and content of each.
1. Information about the property
Matters related to the property to be traded occupy a large portion of the Important Matters Explanation.
The main ones include legal restrictions.
For example, a notification may be required when constructing a building within a certain law area, or a certain type of building may not be able to be built in a certain area.
This information is essential for buyers and other buyers.
This is because many buyers are looking to make effective use of the land by building on it, or want land that requires as little effort as possible.
For example, let's say someone who purchased a piece of land was given incorrect information during the important information explanation session that the zoning was such that it was OK to build a high-rise building.
The buyer of the land wanted to buy it, so he bought it.
When we actually try to build a building, the government tells us that high-rise buildings cannot be built in this area.
As a buyer, you will feel like you have made a huge loss.
After that, real estate troubles will most likely develop between you and the seller.
From the seller's point of view, there was probably a mistake in the main theory due to a mistake in the investigation.
It is highly likely that you will have to pay damages.
In addition, if people had known from the beginning that they would have to go through such troublesome procedures to build on the land, they would not have bought it, which could lead to trouble.
As such, if the important explanation does not include the results of careful research, it can quickly escalate into trouble.
Naturally, when the task of creating important information is undertaken by someone who is not accustomed to it, or when the person is doing the task while also working on other tasks, there is a high likelihood of overlooking something or making a mistake.
Our company has several staff members who are experts in creating important explanations, so by outsourcing this work to us, you can reduce the burden and risk within your company and also increase your sales.
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Specific details to be included
Regarding matters concerning the property in question, a wide range of information must be included, from its physical condition to legal rights and obligations.
These are fundamental pieces of information that buyers need to make a purchase decision, and are stipulated in Article 35, Paragraph 1 of the Real Estate Transaction Business Act.
These mainly include the types and content of registered rights, restrictions based on laws such as the City Planning Act and the Building Standards Act, burdens related to private roads, and the status of facilities for supplying drinking water, electricity, and gas, as well as drainage facilities.
Furthermore, important safety-related information includes details about disaster risks such as designated disaster prevention zones for developed residential areas and landslide hazard zones, as well as whether or not asbestos use surveys and seismic resistance assessments have been conducted.
(1) Details of land and building
Detailed information such as the specific location, area, and zoning of the land or building will be listed.
This is important for buyers to gauge the value and availability of the property.
Details of the land and building include information about the property's current condition and future potential use.
For example, the shape of the land, its access to roads, the structure and age of the building, etc. are specifically described.
This allows buyers to get a concrete idea of the property's value and how it will be used.
The zoning will also be listed, so you can check the property's use and the area that can be built on.
⑵ Registration information
This includes information about the property owner and title.
This includes information recorded in the land registry, easements, mortgages, etc.
Registration information is important for clarifying the ownership and rights of a property.
The land registry records the name and address of the owner, the location of the property, and the lot number.
It also lists any easements or mortgages that have been placed on the property, allowing you to accurately understand the ownership relationship of the property.
In particular, if any easements or liens are in place, the buyer should check how these rights affect the transaction.
(3) Legal restrictions (including points of recent legal amendments)
It also includes information about legal restrictions and regulations based on the Building Standards Act, City Planning Act, etc.
This is necessary to confirm how the property will be used and the area that can be built on.
The area in which the property is located is subject to various legal restrictions and regulations based on the Building Standards Act and City Planning Act.
For example, there are height restrictions, building coverage ratios, and floor area ratios, and buildings must be constructed in accordance with these restrictions.
There may also be designations of zoning and special regulations based on city planning.
(4) Infrastructure development status
Information on how infrastructure such as water, electricity, and gas is developed is also important.
Especially for new build properties, it is important to check how this infrastructure will be developed.
The state of infrastructure development is important information that is directly linked to the living environment and convenience of the property.
Detailed information will also be provided on the water, electricity, and gas supply situation, as well as the state of the sewerage system.
If infrastructure is not in place or is planned for development, plans and timelines will also be explained.
5) Disaster risks and hazard zones
It will also explain whether the property is located in a disaster risk area or is designated as a restricted area.
If the property is located in an area at risk of disaster, for example if it is located in an area prone to earthquakes or where there is a risk of liquefaction, these risks will be explained to you in detail.
⑹ Building performance and evaluation
It also includes information about the building's performance and ratings.
This is necessary to ensure the durability and safety of the property.
Building performance and evaluation include earthquake resistance, insulation performance, durability, etc.
Especially for newly built properties, performance evaluations are carried out based on the latest building standards, which allows us to ensure the safety and comfort of the property.
Even in the case of existing buildings, past renovation history and building inspection results may be listed.
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② Additional information for condominium owners
The critical theory of sectional ownership condominiums is different from the normal critical theory.
Sectional ownership condominiums refer to condominiums, etc.
Here, I will explain it based on the assumption that it is a condominium.
When explaining the important points for a condominium, in addition to explaining the legal restrictions that are usually included in the important points explanation, it is also necessary to explain the restrictions regarding the management regulations, etc.
In the case of sectional ownership condominiums, you are bound by the matters stipulated in the management regulations, etc.
For details, there are provisions in the Condominium Ownership Law.
In other words, before entering into a sales contract, the buyer of a condominium must understand that in addition to the legal restrictions, they will also be subject to certain restrictions set out in the management regulations, etc. (details of the condominium building, the management regulations, the status of repair reserve funds, etc.).
By making sure your customers understand that such restrictions exist before purchasing, you can prevent any problems down the line.
Specific details to be included
For condominium buildings with condominium ownership, the scope of common areas and private areas, as well as the role of the management association, will be explained.
For example, it specifically describes shared areas such as the entrance, hallways, and elevators, as well as the private areas of each unit.
In addition, the management association's operations and the status of the repair reserve fund will also be explained, allowing the buyer to understand the condominium's management system and future repair plans.
Other special provisions include condominium management regulations and specific rules.
For example, it may include rules regarding keeping pets or renovations.
The amount of the repair reserve fund and the progress of the repair plan will also be explained, allowing the buyer to understand future burdens and risks.
③ Matters related to transaction terms
Items related to the terms of the transaction include the transaction price, conditions for termination of the contract, measures to protect the deposit, money lending and borrowing status, and liability for non-compliance with the contract.
These matters need to be understood after reading and interpreting the Real Estate Transactions Act, so many people who are busy with real estate sales etc. may not have the time to do so.
That's why there are benefits to hiring an administrative scrivener who is a lawyer.
Specific details to be included
For condominium buildings with condominium ownership, the scope of common areas and private areas, as well as the role of the management association, will be explained.
For example, it specifically describes shared areas such as the entrance, hallways, and elevators, as well as the private areas of each unit.
In addition, the management association's operations and the status of the repair reserve fund will also be explained, allowing the buyer to understand the condominium's management system and future repair plans.
Other special provisions include condominium management regulations and specific rules.
For example, it may include rules regarding keeping pets or renovations.
The amount of the repair reserve fund and the progress of the repair plan will also be explained, allowing the buyer to understand future burdens and risks.
(1) Transaction price
In addition to the transaction price of the property, you will also be informed of payment methods and whether or not a mortgage is available.
This allows buyers to make decisions based on their own budget and financial plans.
The transaction price will be based on the property's market value and appraisal results.
Payment options and mortgage availability will also be explained so buyers can make a decision based on their financial plan.
Additionally, if there is any room for price negotiation or special terms, these will also be detailed.
⑵ Conditions for termination of contract
Specific cases and conditions for terminating the contract will also be described.
For example, the conditions under which the contract can be terminated will be clearly explained, such as if the property's current condition is different to that described or if the seller does not fulfill the terms of the contract.
(3) Measures to protect the deposit
A detailed outline of security measures such as earnest money deposits is provided in the Real Estate Business Act.
In the case of a real estate transaction in which a real estate agent acts as the seller, if he or she receives a deposit of a certain amount or more from the buyer, the real estate agent is required to take preservation measures.
From the buyer's perspective, it is natural that they would want the deposit they have put down to be managed properly, so this also needs to be mentioned and explained in the important details.
(4) Financial lending and borrowing status
It clearly explains the costs that will be borne by the buyer/lessee and the costs that will be borne by the seller/lessor.
For example, it will specifically state the purchase price and fees to be paid by the buyer, and the rent and deposit to be paid by the tenant.
It also explains any repair or maintenance fees that the seller or landlord will be responsible for, so the buyer or tenant can understand the overall costs and make financial plans.
(5) Liability for non-compliance with contract
Regarding liability for non-conformity with the contract, the document clearly explains what to do if the current condition of the property differs from that of the contract, as well as the scope of responsibility of the seller and real estate agent.
For example, it will specifically state the responsibilities that the seller and real estate agent will bear if a defect is discovered in the property or if facts that are different from what was described are revealed.
(6) Matters concerning deposit offices, etc. and loan arrangements
In accordance with Article 35-2 of the Real Estate Transaction Business Act, it is also necessary to provide information regarding the name and address of the deposit office where the real estate business operator has deposited the business guarantee deposit, or the name of the guarantee association to which the operator belongs.
This is to ensure that the buyer can receive compensation from the deposit office in the event of any losses incurred during the transaction.
Furthermore, when arranging a mortgage for payment of the price, the terms and conditions of the installment sale, etc., must be clearly stated and explained.
④ Additional explanations for rental properties
When it comes to rental properties, you need to be careful about fixed-term rental contracts.
Normal leases can usually be renewed.
However, if it is a fixed-term lease, it cannot be renewed.
In other words, you may think you will be able to renew your lease, but when the deadline comes you will find that you are unable to do so and are forced to vacate your home.
The real estate agent should also provide thorough explanations to the tenant so that they do not fall into any unexpected situations.
As with a sale or purchase, it is best to have the tenant understand what type of property the property is before signing a contract.
When it comes to renting, tenants are often at a huge disadvantage.
Let's protect the tenant by stating and explaining in the important statement that it may be disadvantageous to the tenant.
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FAQ
What is the Important Information Explanation Sheet?
An important information explanation document is a document used by sellers or real estate agents to provide detailed information about the property to tenants or buyers in real estate transactions.
This document is required by law and plays a very important role in ensuring transparency in transactions and preventing problems from occurring.
What should I check before signing a contract?
It is important that you thoroughly read the important information contained in the contract before signing it.
In particular, it is necessary to thoroughly research the current status of the property, legal restrictions, transaction terms, etc., and be sure to answer any questions from the tenant or buyer and provide a satisfactory explanation.
When will the Important Information Sheet be handed over?
The Important Information Explanation is usually provided to the tenant or buyer prior to signing a contract.
It is too late to do so after the contract has been signed, so it is important to have it checked thoroughly before signing.
Can I download a template for the Important Information Explanation Form for free?
In some cases, you may be able to download a generic explanatory document template for free from the Internet.
However, to obtain a document containing detailed information about a specific property or transaction, it is generally necessary to get a formal document from the seller or real estate agent.
